KBRA Releases Research Report: The Nature of Catastrophic Flooding
and the Effects of Hurricane Harvey

August 31, 2017 11:32 AM Eastern Daylight Time

NEW YORK--(EON: Enhanced Online News)--Kroll Bond Rating Agency (KBRA) expects Hurricane Harvey will have a
modest impact to underwriting results to those insurers exposed to the
region in the coming quarters. In the report, KBRA provides historical
context to the event along with dialogue on the initial loss estimates
and how these losses may be covered. Given this is an ongoing event,
many details and the scope of damage is still yet unknown with
recoverable losses likely to be spread across the insurance sector, both
primary and reinsurance carriers, in addition to government
instrumentalities (NFIP and FEMA).

As a result of the effects of Hurricane Harvey, there is unlikely to be
any significant changes to the capitalization of the overall U.S.
property casualty (P/C) insurance market and muted primary pricing
impact due to the current surplus levels across the industry. In the
midst of the busiest period of hurricane season, and with three months
remaining in the 2017 season, KBRA notes that a second material event
could further highlight strong and weak reinsurance programs.
Additionally, KBRA doesn’t anticipate negative rating actions to the
KBRA-rated universe of insurance companies and further opines that the
P/C insurance market is adequately positioned to absorb losses, given
current capitalization levels and loss estimates.

KBRA is registered with the U.S. Securities and Exchange Commission as a
Nationally Recognized Statistical Rating Organization (NRSRO). In
addition, KBRA is recognized by the National Association of Insurance
Commissioners (NAIC) as a Credit Rating Provider (CRP).

NEW YORK--(EON: Enhanced Online News)--On March 15, 2018, Kroll Bond Rating Agency (KBRA) assigned a long-term rating of AA- with a Negative Outlook to the State of Connecticut (the “State”) Genera... more »